Engagement Master Class...REVENUE MANAGEMENT Our typical client engagement provides a 10-to-1 return...
Transcript of Engagement Master Class...REVENUE MANAGEMENT Our typical client engagement provides a 10-to-1 return...
1215 Hightower TrailBuilding A, Suite 100
www.mathereconomics.com
mathereconomics.com
Engagement
Master Class
September 2020
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10:1RETURN ON
INVESTMENT
Mather works with organizations in several industries to help them
adapt their business models to digital disruption.
200CLIENTS IN
DIVERSE INDUSTRIES
We provide customer
analytics and yield
management for over 200
clients with $6 billion in
combined annual revenue
and 30 million customers.
$6B+REVENUE
MANAGEMENT
Our typical client engagement provides a
10-to-1 return on investment. We increase
revenue yield and reduce risks from pricing actions.
18YEARS EXPERIENCE &
TURNKEY CONSULTING
Founded in 2002 with offices in North America
and Europe. Our consulting services include extensive reporting with A/B testing
and model validation. We are fully GDPR, CPPA compliant
and SOC2 audited.
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Publishers often leverage a composite digital engagement index, composed of five
different variables measuring intensity, frequency, recency, and breadth of digital content
consumption.
A composite index allows for use of several different types of digital engagement
metrics without negative effects of multicollinearity.
Intensity(Page Views)
Article
Page Views
Frequency (Visits)
Recency (Days Since Last Visit)
Breadth (Unique Sections)
Composite Digital
Engagement Index
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DIGITAL AUDIENCE
ENGAGEMENT
SEGMENTS
THE VALUE OF
KNOWING A READER
CHANGES IN
ENGAGEMENT
PREDICT CHURN
PRICING OPTIMIZATION
& PRICE ELASTICITY BY
ENGAGEMENT LEVEL
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ENTHUSIASTSSTABLE USERSFLYBYSAVG. PER USER
PER MONTH
ALL USERS 6.9M 595K 340K 167K
PAGEVIEWS 1.4 7.0 14.4 100.7
ARTICLE PAGEVIEWS 0.9 2.6 4.4 27.2
VISITS 1.1 2.6 5.0 26.2
TIME PER VISIT 02:17 06:57 07:40 06:41
SCROLL DEPTH 28% 50% 52% 62%
AD REVENUE $0.01 $0.05 $0.12 $1.08
UNIQUE DAYS 1.1 2.1 3.6 9.5
% KNOWN USERS 0% 2% 5% 38%
CONVERSION RATE 0.00% 0.22% 0.28% 0.73%
FANATICS
• The growth in volume of Fanatic users is the primary driver of the spike in conversions observed during March – June 2020.
• Fanatic volume grew over 3X and the proportion of total Fanatics grew by 2X, impacting total conversions 2X vs. 2019.
• The conversion ratio for all users (0.04%) stayed consistent while the Fanatic conversion ratio declined (1.4% in 2019; 0.77% in 2020).
• The proportion of Conversions from the Fanatic segment declined slightly YOY (64% in 2019; 58% in 2020).
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0.0
0.5
1.0
1.5
2.0
2.5
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Ind
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vs.
Ap
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Year Over Year Performance Metrics: Indexed vs. April 2019
Conversion Ratio Fanatic Conversion Ratio % Fanatic Conversions
Fanatic Users % Fanatic Users Conversions
Conversion ratios
remained consistent
or declined vs. 2019
Total Fanatic volume grew over
3X and the proportion of
Fanatics grew 2X, triggering a
2X spike in conversions
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0.015%
0.061%0.063%
0.000%
0.010%
0.020%
0.030%
0.040%
0.050%
0.060%
0.070%
0
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All Users High PropensitySegment
Known UserSegment
Conv
ers
ion P
rob
ab
ility
Uni
que U
sers
Mill
ions
User Segments and Conversion Probability:
Large Publisher with Registration Wall
20%
14%
12%
9%
9%
8%
7%
7%
5%
3%
2%
1%
1%
1%
0%
0% 5% 10% 15% 20% 25%
Known User
Time Per Visit
Page Views
Visits
Article Page Views
Avg Depth
Avg Velocity (Pixels Per Second)
Avg Breadth
Unique Days
Hard Modal Count
Desktop
Morning
Weekday
Local
Paywall Encountered in Prior Visit
Machine Learning Model Feature Influence: Large Publisher with Registration Wall
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Very Low Low Medium High Very High
Registered
Subscribed
Registered users are
moderately engaged,
but subscribed users
are most engaged.
Mather recommends considering engagement during pricing decisions. You may consider excluding “sleepers” from price changes if they have zero engagement for long period of time
Sample* pricing recommendations by Audience Segment
• Fanatics & Enthusiasts: Regular renewal price change
• Stable & Dabblers: Moderated renewal price change
• Not Engaged: No price increase
* Note: these results will differ by product
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Engagement Segments
Price
Ela
stic
ity
Fanatics Enthusiasts Stable Dabbler Not Engaged
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Read Mather’s White PaperDigital Subscriber Price Optimization
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Very Low Low Medium High Very High
KP PP NPPrint Activated Digital Only–Intro Digital Only – Full Price
Full price digital subscriptions tend to have the highest engagement, while print + digital
and promotional digital-only subscriptions have lower.
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Bu
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Bu
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Bu
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Six
Mo
nth
Te
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Sample Regression Output
Engagement levels have significant effect on subscriber retention
Sales channels attract customers with different levels of engagement:
• Direct sales to customers that go to the subscription page directly are most engaged
• Metered customers have next highest engagement
• Premium/restricted content sales have the lowest engagement
Retention of these customers reflects their engagement levels at time of the subscription purchase.
Challenge – increase engagement following the sale, particularly those from premium content.
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40%
50%
60%
70%
80%
90%
100%
1 3 5 7 9 11 13 15 17 19 21 23 25
Re
ten
tio
n
Retention Weeks
Direct
Metered
Restricted
Convert anonymous visitors to known readers
Segment audience by engagement for acquisition
and engagement
Consider engagement levels when adjusting
subscription prices
Trigger retention campaigns when engagement
falls below historical pattern
Read Mather’s White PaperUser engagement, environment are
key inputs driving propensity to
subscribe
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www.mathereconomics.com
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